Xbox split sparks layoffs at Undead Labs
The independent gaming world is buzzing with news from the development side, particularly as studios navigate the choppy waters of corporate restructuring. Undead Labs, the team behind the critically acclaimed State of Decay franchise, recently confirmed that they underwent significant layoffs following their separation from Xbox.
While corporate shifts often bring uncertainty, the core focus for Undead Labs remains squarely on the development of their ambitious projects. Despite the changes, the studio has issued a clear and reassuring statement regarding the future of their flagship title, State of Decay 3.
“State of Decay 3 remains in active development, and these changes will not impact the game’s launch,” confirmed Philip Holt, the Studio Head of Undead Labs. Holt stressed that the team is maintaining its work on schedule and remains dedicated to delivering the experience the community has been eagerly awaiting.
This news comes amidst a larger shakeup within the gaming ecosystem, as the studio’s separation from Xbox was part of Microsoft’s broader strategy for the brand. The transition has brought questions about the future of various development teams, but Undead Labs has firmly signaled that their creative trajectory is unaffected by these corporate movements.
The studio emphasized that the talent and dedication within Undead Labs remain intact, regardless of restructuring. Holt acknowledged the departure of colleagues, stating that the individuals who helped shape the franchise and the studio’s journey are valued, regardless of where their careers lead next.
At the heart of the studio’s message is a powerful commitment to independence. Philip Holt explained that pursuing independence allows the team to focus on what matters most: crafting the best possible games and earning the continued support of their dedicated player base. “Independence brings us closer to our community and lets us focus on what matters most: making the best games we can,” he stated.
For fans of the State of Decay universe, this is more than just a corporate update; it is a reaffirmation of the passion driving the franchise. With the development of State of Decay 3 still firmly on track for its anticipated 2027 release, Undead Labs is positioning itself to thrive as a fully independent entity, fueled by community trust and creative freedom.
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